Posts Tagged ‘purchases’

It is all about discounts and downgrades this Mother’s Day, as consumers are scaling back purchases wherever possible. All holiday-related categories will experience massive declines and total sales are expected to drop a whopping 14.7 percent, to $12.9 billion, according to industry research firm IBISWorld.

“The economy is staring at a very steep, downward trajectory,” explained George Van Horn, senior analyst with IBISWorld. “With the economic picture so unclear, gift giving just isn’t in many household budgets – even if it is for mom.”

Those who do make purchases are staying away from department stores and speciality retailers (i.e. jewelers, florists, consumer electronic stores, etc.) and are instead opting to shop in discount outlets. The data also shows a strong trend of shoppers downgrading their gift purchases to smaller, lower-priced merchandise and services. The reality is that consumers will choose to make a home-cooked meal for mom rather then spend big in a fancy restaurant.

“This Mother’s Day we are seeing the reality of how difficult the situation has become,” said Van Horn. Two years of economic decline is being squeezed into one year’s reduction in spending.